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An Error Corrected Almost Ideal Demand System for Major Cereals in Kenya

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  • Nzuma, Jonathan M.
  • Sarker, Rakhal

Abstract

Despite significant progress in theory and empirical methods, the analysis of food consumption patterns in developing countries, particularly those in Sub Saharan Africa has received very limited attention. An attempt is made in this article to estimate an Error Corrected Almost Ideal Demand System for four major cereals consumed in Kenya employing annual data from 1963 to 2005. The model performs well both on theoretical and empirical grounds. All own-price elasticities are negative and statistically significant and all cereals are necessities both in the short-run and in the long-run in Kenya.

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  • Nzuma, Jonathan M. & Sarker, Rakhal, 2008. "An Error Corrected Almost Ideal Demand System for Major Cereals in Kenya," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6443, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea08:6443
    DOI: 10.22004/ag.econ.6443
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    1. Vittorio Nicolardi, 2009. "The effects of the new 1995 ESA methodologies of estimation on the structural analysis of Italian consumption," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 18(1), pages 125-149, March.
    2. Mailu, S.K. & Mulinge, W., 2016. "Excise tax changes and their impact on Gadam sorghum demand in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246959, African Association of Agricultural Economists (AAAE).
    3. Valdivia, Roberto O. & Antle, John M. & Stoorvogel, Jetse J., 2012. "Coupling the Tradeoff Analysis Model with a market equilibrium model to analyze economic and environmental outcomes of agricultural production systems," Agricultural Systems, Elsevier, vol. 110(C), pages 17-29.

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    Demand and Price Analysis;

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